Proposal for a COUNCIL IMPLEMENTING DECISION authorising Sweden to apply a reduced rate of taxation to electricity directly provided to vessels at berth in a port
Date: 2024-01-22
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: Sweden, electrical energy, electricity supply, excise duty, harbour installation, tax relief, vessel

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   EUROPEAN COMMISSION  Brussels, 22.1.2024  COM(2024) 18 final 2024/0008 (NLE)  Proposal for a COUNCIL IMPLEMENTING DECISION authorising Sweden to apply a reduced rate of taxation to electricity directly provided to vessels at berth in a port  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Taxation  of  energy  products  and  electricity  in  the  Union  is  governed  by  Council  Directive 
2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of 
energy products and electricity1 (the ‘Energy Taxation Directive’ or the ‘Directive’). 

Pursuant to Article 19(1) of the Directive, in addition to the provisions laid down in particular 
in  its  Articles  5,  15  and  17,  the  Council,  acting  unanimously  on  a  proposal  from  the 
Commission, may authorise any Member State to introduce further exemptions or reductions 
in the level of taxation for specific policy considerations. 

By  virtue  of  Council  Implementing  Decision  2020/1674/EU  of  29  October  20202  (preceded 
by  Council  Implementing  Decision  2014/725/EU  of  14  October  20143  and  Council 
Implementing Decision 2011/384/EU of 20 June 20114), Sweden has already been authorised 
to apply a reduced rate of taxation to electricity directly supplied to vessels, other than private 
pleasure craft5, berthed in ports (‘shore-side electricity’). 

The objective of this proposal is to extend that authorisation as requested by Sweden, given 
that the current derogation will expire on 31 December 2023. 

By  letter  dated  5  April  2023,  the  Swedish  authorities  informed  the  Commission  of  their 
intention  to  prolong  the  current  measure  until  31  December  2027.  The  Swedish  authorities 
provided additional information by letter dated 19 October 2023. 

The intention of the Swedish authorities is to apply a reduced rate of SEK 6 (app. EUR 0.552) 
(6) per MWh of electricity tax to shore-side electricity. At the time of the submission of the 
request this tax rate was in accordance with the minimum rate of  taxation for electricity for 
business use as laid down in Directive 2003/96/EC (i.e. EUR 0.5 per MWh). 

Article  13  of  the  Directive  lays  down  a  tolerance  limit  for  Member  States  that  have  not 
adopted  the  euro.  These  Member  States  are  obliged  to  check  once  a  year  if  the  tax  rates 
expressed  in  national  currencies  are  in  line  with  the  minimum  rates  of  the  Directive.  This 
exercise  is  done  using  the  exchange  rates  published  in  the  Official  Journal  of  the  European 
Union  on  the  first  working  day  of  October.  Member  States  may  maintain  the  amounts  of 
taxation in force at the time of the annual adjustment only if the conversion of the amounts of 
the level of taxation expressed in euro would result in an increase of less than 5% or EUR 5, 
whichever is the lower amount, in the level of taxation expressed in national currency. 

The requested period of validity of the derogation is from 1 January 2024 until 31 December 
2027,  which  is  in  continuity  with  the  current  derogation  and  within  the  maximum  period 
allowed by Article 19 of the Energy Taxation Directive. 

1 
2 
3 
4 
5 

6 

OJ L 283, 31.10.2003, p. 51–70. 
OJ L 378, 12.11.2020, p. 3–4. 
OJ L 301, 21.10.2014, p. 27–28. 
OJ L 170, 30.06.2011, pp. 36–37. 
The  term  ‘private  pleasure  craft’  is  defined  in  Article  14(1)(c),  second  subparagraph  of  Directive 
2003/96/EC. 
All calculations are based on the exchange rate on 3 October 2022, i.e. SEK 10,8743 for EUR 1. Cf. OJ 
C 381/4 of 4.10.2022 

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The  aim  of  the  tax  measure  is  to  encourage  vessels,  which  usually  use  an  oil-propelled 
auxiliary  motor  for  their  electricity  supply,  to  use  shore-side  electricity  instead.  These 
provisions  lead  to  fewer  emissions  from  vessels  lying  at  berth,  thereby  reducing  the 
deposition  of  acidifying  substances,  which  is  a  problem  particularly  in  south-west  Sweden. 
The provisions are also  considered to lead to significant local environmental improvements, 
inter alia in the form of a reduction in noise levels. 

The tax measure involves lowering the energy tax applicable to shore-side electricity from the 
otherwise applicable level of SEK 39.2 per MWh to SEK 6 per MWh. 

According  to  Article  14(1)(c)  of  the  Energy  Taxation  Directive  Member  States  have  to 
exempt energy products used to produce electricity –and electricity produced- on board ships 
at berth in ports. They may also do so in the case of electricity produced on board ships for 
navigation  on  inland  waterways  according  to  Article  15(1)(f)  of  the  Directive.  Sweden 
confirmed the transposition of this latter optional exemption. 

Sweden  will  apply  the  reduced  rate  of  electricity  taxation  to  all  supplies  of  shore-side 
electricity  of  at  least  380 V  to  vessels  used  for  commercial  shipping  of  at  least  400  gross 
tonnage. The limit  is  considered  appropriate by  the Swedish  authorities  so as to  ensure that 
the absolute majority of vessels used in international traffic and larger vessels used in national 
traffic  will  be  covered  by  the  proposed  reduction.  These  are  the  vessels  considered  to  be 
responsible  for  the  largest  part  of  emissions  caused  by  the  running  of  auxiliary  motors  on 
board while berthed in ports. The reduction does not apply when the ship is used for private 
purposes or when it is laid up or has been taken out of service on a long-term basis. 

There is however no obligation for vessels to use shore-side electricity. 

The annual budgetary expenditure is estimated at SEK 12 million. 

The measure is granted in the form of a repayment reducing the tax burden on the electricity 
concerned. 

The Swedish authorities consider that the tax reduction applied to shore-side electricity does 
not create a significant competitive benefit for vessel operators using shore-side electricity as 
opposed  to  those  using  on  board  generation.  If  only  the  electricity  cost  itself  and  the  tax  is 
taken  in  account,  then  the  cost  for  shore-side  electricity  with  a  lower  tax  rate  is  somewhat 
lower than the price for electricity produced on board. However, the total cost for the use of 
shore-side  electricity  is  also  affected  by  additional  costs  in  the  form  of  grid  charges, 
investments in the on-board connection and directly or indirectly the costs for investments in 
the port supply facilities. However, as the investments in the supply facilities in the ports and 
on  board  are  quite  costly,  the  Swedish  authorities  consider  that  a  lower  tax  rate  is  a 
prerequisite  for ports  and ship  owners making these investments. According  to  the Swedish 
authorities the current and previous derogations have had a direct impact on both the number 
of ports and the number of facilities providing shore-side electricity by positively affecting the 
profitability of the transition from fossil fuels to electricity. 

The  aim  of  the  measure  is  to  reduce  the  environmental  impact  of  maritime  transport.  The 
measure  will  reduce  airborne  emissions  and  noise  from  vessels  lying  at  berth.  The  measure 
will go some way towards facilitating the achievement in the port cities of the limit values for 
nitrogen dioxide set  out  in  the Air  Quality  Directive (2008/50/EC). This  also  has  a positive 
impact on other air quality parameters around the ports. 

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Sweden  requested  the  authorisation  to  be  granted  until  31  December  2027,  starting  from  1 
January  2024,  without  interruption  with  the  current  derogation  and  within  the  maximum 
period indicated in Article 19(2) of the Directive. 

• 

Consistency with existing policy provisions in the policy area 

Taxation of electricity is governed by Directive 2003/96/EC, in particular Article 10.  Article 
14(1)(c) provides for an obligatory tax exemption for energy products for navigation as well 
as for electricity produced on board a craft. Articles 5, 15 and 17 provide for the possibility 
for  Member  States  to  apply  tax  differentiations,  including  exemptions  and  reductions,  to 
certain  uses  of  electricity.  However,  as  such,  these  provisions  do  not  provide  for  reduced 
taxation of shore-side electricity. 

Provisions under the Energy Taxation Directive 

Assessment of the measure under Article 19 of Directive 2003/96/EC 

Article 19(1), first subparagraph, of the Directive reads as follows:  

In addition to the provisions set out in the previous Articles, in particular in Articles 5, 15 and 
17, the Council, acting unanimously on a proposal from the Commission, may authorise any 
Member  State 
for  specific  policy 
considerations. 

further  exemptions  or  reductions 

introduce 

to 

The Commission has already recommended the use of shore-side electricity as an alternative 
to  the  generation  of  electricity  on  board  the  vessels  at  berth  and  thereby  recognised  its 
environmental advantages7.  

The  possibility  to  introduce  a  favourable  tax  treatment  to  shore-side  electricity  can  be 
envisaged  under  Article  19  of  the  Directive  since  its  purpose  is  to  allow  Member  States  to 
introduce further exemption or reductions for specific policy considerations.  

Sweden  has  requested  that  the  measure  should  apply  for  4  years,  less  than  the  maximum 
period  allowed  by  Article  19(2),  i.e.  6  years.  In  principle,  the  period  of  application  of  the 
derogation  should  be  long  enough  in  order  not  to  discourage  port  operators  and  electricity 
suppliers  from  continuing  or  starting  to  make  the  necessary  investments  in  shore-side 
electricity  facilities.  This  period  will  provide  the  legal  certainty  also  to  ship  operators,  that 
have to plan their investments in on-board equipment.  

However,  the  derogation  should  not  undermine  future  developments  of  the  existing  legal 
framework  and  should  take  into  account  the  ongoing  revision  of  the  Energy  Taxation 
Directive  and  a  possible  adoption  by  the  Council  of  a  legal  act  based  on  the    Commission 
proposal to recast the Energy Taxation Directive8.  

Under  these  circumstances,  while  it  appears  appropriate  to  grant  the  authorisation  for  the 
requested  period,  the  validity  of  the  derogation  should  be  made  subject  to  the  entry  into 
application of general provisions on the matter at a point in time earlier than the end of 2027. 

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8 

Commission Recommendation 2006/339/EC of 8 May 2006 on the promotion of shore-side electricity 
for use by ships at berth in Community ports (OJ L 125, 12.5.2006). 
COM/2021/563  final:  Proposal  for  a  COUNCIL  DIRECTIVE  restructuring  the  Union  framework  for 
the taxation of energy products and electricity (recast)  

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State aid rules 

The  reduced  tax  rate  of  SEK  6  (app.  EUR  0.552)  (9)  per  MWh  envisaged  by  the  Swedish 
authorities was at the time of the submission of the request in accordance with the minimum 
rate of taxation for electricity for business use as laid down in Directive 2003/96/EC. 

The Swedish authorities acknowledge that the measure constitutes state aid and argue that the 
measure  meets  the  material  conditions  in  Commission  Regulation  (EU)  No  651/2014  of  17 
June  2014,  as  last  amended  by  Commission  Regulation  (EU)  2023/1315  of  23  June  2023, 
declaring  certain  categories  of  aid  compatible  with  the  internal  market  in  application  of 
Articles 107 and 108 of the Treaty (the ‘General Block Exemption Regulation’, ‘GBER’). 

The  proposal  for  a  Council  implementing  decision  does  not  prejudge  the  Member  State’s 
obligation to ensure compliance with State aid rules. 

• 

Consistency with other Union policies 

Environment and climate change policy 

The  requested  measure  concerns  mainly  the  EU's  environment  policy.  To  the  extent  that  it 
will help to reduce the burning of bunker fuels on board the vessels in ports, the measure will 
in fact contribute to the objective of improving local air quality, reducing noise and fighting 
climate  change.  Directive  2008/50/EC  on  Ambient  Air  Quality10  requires  Member  States  to 
ensure  that  the  levels  of  several  air  pollutants  are  kept  below  the  limit  values,  target  values 
and other air quality standards, established in the Directive. This obligation requires Member 
States  to  find  solutions  to  problems  such  as  ship  emissions  at  berth  in  ports  where  this  is 
relevant  and it is  conceivable that in  ports where these problems  exist the use of shore-side 
electricity  will  be  encouraged  as  one  element  of  the  overall  air  quality  strategy.  The  use  of 
shore-side  electricity  is  also  encouraged  under  Directive  (EU)  2016/80211  regulating  the 
sulphur content in marine fuels. 

According  to  the  Swedish  authorities,  the  use  of  shore-side  electricity  has  led  to  emission 
reductions  of  sulphur  dioxide,  nitric  oxides,  particulate  matters  and  carbon  oxides.  The 
Swedish  Authorities  do  not  presently  have  any  more  recent  estimates  of  the  emission 
reductions attributed to the measure. The full potential of the measure has not been reached 
since  costly  equipment  is  needed  both  on  quays  and  on  the  ships.  The  use  of  shore-side 
electricity  is  of  importance  in  the  Swedish  strive  to  meet  the  air  quality  standards  in 
accordance with the directive 2008/50/EC of 21 May 2008 on ambient air quality and cleaner 
air for Europe. 

Energy policy 

The  measure  is  in  line  with  Directive  2014/94/EU  on  the  deployment  of  alternative  fuels 
infrastructure12, which addresses the issue of installing shore-side electricity supply facilities 

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10 

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12 

All calculations are based on the exchange rate on 3 October 2022, i.e. SEK 10,8743 for EUR 1. Cf. OJ 
C 381/4 of 4.10.2022 
Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air 
quality and cleaner air for Europe (OJ L 152, 11.6.2008, p 1). 
Directive (EU) 2016/802 of the  European Parliament and of the Council of 11 May 2016 relating to a 
reduction in the sulphur content of certain liquid fuels (OJ L 132, 21.5.2016, p. 58–78). 
Directive  2014/94/EU  of  the  European  Parliament  and  of  the  Council  of  22  October  2014  on  the 
deployment of alternative fuels infrastructure (OJ L 307, 28.10.2014, pp. 1–20) 

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in ports where there is demand for such facilities and the costs are not disproportionate to the 
benefits, including environmental benefits.  

It has to be recalled at this point that one important reason for the unfavourable competitive 
position of shore-side electricity lies in the fact that the alternative, i.e. electricity produced on 
board the vessels while in maritime ports, currently enjoys a full net tax exemption: not only 
is  the  bunker  fuel  burnt  for  generating  the  electricity  exempt  from  taxation,  which 
corresponds to the normal situation under Article 14(1)(a) of Directive 2003/96/EC, but also 
the electricity produced on board the vessels is itself exempt (cf. Article 14(1)(c) of Directive 
2003/96/EC). Although the latter exemption could as such be considered difficult to reconcile 
with the environmental objectives of the Union, it mirrors considerations of practicability. In 
fact,  taxation  of  the  electricity  produced  on  board  would  require  a  declaration  by  the  ship 
owner  –  often  established  in  a  third  country  –  or  operator  of  the  amount  of  electricity 
consumed. The declaration would furthermore have to  determine the share of the electricity 
consumed in the territorial waters of the Member State where the tax is due. It would create a 
huge  administrative  burden  for  ship-owners  to  have  to  make  such  declarations  for  every 
Member State whose territorial waters are concerned. 

Transport policy 

The measure is in line with Commission recommendation 2006/339/EC on the promotion of 
shore-side  electricity  for  use  by  ships  at  berth  in  Union  ports13  and  with  the  Commission 
Communication  Strategic  goals  and  recommendations  for  the  EU's  maritime  transport 
policy14. 

Internal market and fair competition 

From the point of view of the internal market and fair competition the measure only reduces 
the existing tax distortion between two competing sources of electricity for boats at berth, i.e. 
on board generation and shore-side electricity, caused by the tax exemption for bunker fuels. 

The Swedish authorities have not observed considerable changes in the ship owners’ choice of 
ports linked to the availability of shore-side electricity facilities. Presently mainly ferries and 
route bound traffic make use of the shore-side electricity. The ship owners’ choice of port is 
not  based  on  whether  shore  side  electricity  is  supplied  or  not.  According  to  stakeholders, 
cruise liners often chose berths where shore-side electricity is available. 

Furthermore,  access  to  shore-side  electricity  will  be  available  for  the  ships  concerned 
regardless  of  their  flag  without  leading  to  a  more  advantageous  tax  treatment  of  national 
economic operators over their competitors from other EU Member States. 

Concerning competition between ports, it can be expected that any potential impact on trade 
between  Member  States,  which  could  result  if  vessels  alter  their  routes  because  of  the 
possibility  to  consume  shore-side  electricity  at  a  reduced  tax  rate,  will  be  negligible.  In  a 
situation where, as stated above, the use of shore-side electricity is, at least in the short term, 
unlikely to become more economic than on-board generation in spite of the tax reduction, this 

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Commission Recommendation 2006/339/EC of 8 May 2006 on the promotion of shore-side electricity 
for use by ships at berth in Community ports (OJ L 125, 12.5.2006) 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic  and  Social  Committee  and  the  Committee  of  the  Regions  –  Strategic  goals  and 
recommendations for the EU's maritime transport policy until 2018, COM(2009) 8 final of 21 January 
2009. 

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tax  reduction  for  shore-side  electricity  is  also  unlikely  to  significantly  distort  competition 
between ports by inducing vessels to change their itinerary according to the availability of this 
option. 

The  timeframe  for  which  it  is  proposed  to  prolong  the  authorisation  to  apply  a  reduced  tax 
rate, unless there will be significant changes in the current framework and situation, makes it 
unlikely that the analysis conducted in the preceding paragraphs will change before the date 
of expiry of the measure. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

Article 19 of Council Directive 2003/96/EC. 

• 

Subsidiarity (for non-exclusive competence)  

The  field  of  indirect  taxation  covered  by  Article  113  of  TFEU  is  not  in  itself  within  the 
exclusive competence of the European Union within the meaning of Article 3 of TFEU. 

However,  pursuant  to  Article  19  of  Directive  2003/96/EC,  the  Council  has  been  granted  an 
exclusive competence, as a matter of secondary law, to authorise a Member State to introduce 
further exemptions or reductions within the meaning of that provision. Member States cannot 
therefore substitute themselves for the Council. As a result, the principle of subsidiarity is not 
applicable  to  the  present  implementing  decision.  In  any  event,  since  this  act  is  not  a  draft 
legislative act, it should not be transmitted to national Parliaments pursuant to Protocol No 2 
to the Treaties for review of compliance with the subsidiarity principle. 

• 

Proportionality 

The proposal respects the principle of proportionality. The tax reduction does not exceed what 
is necessary to attain the objective in question. 

• 

Choice of the instrument 

The  instrument  proposed  is  a  Council  implementing  decision.  Article  19  of  Directive 
2003/96/EC makes provision for this type of measure only. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

The measure does not require the evaluation of existing legislation. 

• 

Stakeholder consultations 

This proposal is based on a request made by  Sweden and concerns only  this Member State. 
Therefore, no stakeholder consultation has been conducted. 

• 

Collection and use of expertise 

There was no need for external expertise. 

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• 

Impact assessment 

This proposal concerns an authorisation for an individual Member State upon its own request 
and does not require an impact assessment. 

The information provided by Sweden suggests that the measure will have a limited impact on 
tax  revenues.  In  more  detail,  an  estimation  of  the  tax  expenditures  from  the  measure, 
according  to  the  Swedish  authorities,  a  loss  of  SEK  12  million  per  year  is  expected  for  the 
coming years. 

Sweden  expects  the  measure  to  have  a  positive  impact  on  the  achievement  of  its 
environmental  goals  and  in  particular  the  improvement  of  air  quality  in  accordance  with 
Directive 2008/50/EC on ambient air quality and cleaner air for Europe. The use of shore-side 
electricity has led to emission reductions of sulphur dioxide, nitric oxides, particulate matter 
and  carbon  oxides.  The  full  potential  of  the  measure  has  not  been  reached  since  costly 
equipment is needed both on quays and on the ships. 

• 

Regulatory fitness and simplification 

The  measure  does  not  provide  for  a  simplification.  It  is  the  result  of  the  request  made  by 
Sweden and concerns only this Member State. 

• 

Fundamental rights 

The measure has no bearing on fundamental rights. 

4. 

BUDGETARY IMPLICATIONS 

The  measure  does  not  impose  any  financial  or  administrative  burden  on  the  Union.  The 
proposal therefore has no impact on the budget of the Union. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

An  implementation  plan  is  not  necessary.  This  proposal  concerns  an  authorisation  for  a  tax 
reduction  for  an  individual  Member  State  upon  its  own  request.  It  is  provided  for  a  limited 
period until 31 December 2027. The tax rate that will apply will have to be in accordance with 
the  minimum  level  of  taxation  set  by  the  Energy  Taxation  Directive.  The  measure  can  be 
evaluated in case of a request for a renewal after the validity period has expired. 

• 

Explanatory documents (for directives) 

The proposal does not require explanatory documents on the transposition.  

• 

Detailed explanation of the specific provisions of the proposal 

Article 1 stipulates that Sweden will be allowed to apply a reduced rate of electricity taxation 
to electricity directly supplied to vessels, other than private pleasure craft, berthed in Swedish 
ports (‘shore-side electricity’). The tax rate must be in line with the minimum level of taxation 
for electricity for business use set by the Directive. It will not be possible to supply electricity 
at a reduced rate to private pleasure craft as defined in Article 14(1)(c), second subparagraph 
of Directive 2003/96/EC. 

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Article  2  stipulates  that  the  authorisation  requested  is  granted  with  effect  from  1  January 
2024,  in  continuity  with  the  current  Council  Implementing  Decision  2014/725/EU,  until  31 
December 2027, within the maximum period of 6 years allowed by the Directive, as requested 
by Sweden. 

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2024/0008 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

authorising Sweden to apply a reduced rate of taxation to electricity directly provided to 
vessels at berth in a port 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union,  

Having  regard  to  Council  Directive  2003/96/EC  of  27  October  2003  restructuring  the 
Community framework for the taxation of energy products and electricity1, and in particular 
Article 19 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

1 
2 

By Council Implementing Decision 2020/1674/EU2, Sweden was authorised to apply a 
reduced  rate  of  taxation  to  electricity  directly  provided  to  vessels,  other  than  private 
pleasure craft, at berth in a port (‘shore-side electricity’) in accordance with Article 19 
of Directive 2003/96/EC until 31 December 2023. 

By letter of 5 April 2023, Sweden sought authorisation to continue to apply a reduced 
rate  of  taxation    to  shore-side  electricity  pursuant  to  Article  19  of  Directive 
2003/96/EC  until  31  December  2027.  The  Swedish  authorities  provided  additional 
information by letter dated 19 October 2023. 

By  applying  a  reduced  rate  of  taxation  to  shore-side  electricity,  Sweden  aims  to 
continue the promotion of the use of shore-side electricity. The use of such electricity 
is considered to be an environmentally less harmful way to satisfy the electricity needs 
of vessels lying at berth in ports than the burning of bunker fuels. 

Insofar  as  the  use  of  shore-side  electricity  helps  to  avoid  emissions  of  air  pollutants 
originating from the burning of bunker fuels, it contributes to an improvement to the 
local air quality in port cities and to noise reduction. The measure is therefore expected 
to contribute to the environmental, health and climate policy objectives of the Union. 

Allowing Sweden to apply a reduced rate of taxation to shore-side electricity does not 
go  beyond  what  is  necessary  to  increase  the  use  of  such  electricity,  since  on-board 
generation  of  electricity  will  remain  the  more  competitive  alternative  in  most  cases. 
For  the  same  reason,  and  because  of  the  current  relatively  low  degree  of  market 
penetration of the technology, the measure is unlikely to lead to significant distortions 
in  competition  during  its  lifetime  and  would  thus  not  negatively  affect  the  proper 
functioning of the internal market. 

OJ L 283, 31.10.2003, p. 51. 
Council  Implementing  Decision  (EU)  2020/1674  of  29  October  2020  authorising  Sweden  to  apply  a 
reduced rate of taxation to electricity directly provided to vessels at berth in a port, in accordance with 
Article 19 of Directive 2003/96/EC (OJ L 378, 12.11.2020, p. 3,  
ELI: http://data.europa.eu/eli/dec_impl/2020/1674/oj). 

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(6) 

(7) 

In accordance with Article 19(2) of Directive 2003/96/EC, each authorisation granted 
under that provision is to be limited in time. In order to ensure that the authorisation 
period  is  sufficiently  long  so  as  not  to  discourage  relevant  economic  operators  from 
making the necessary investments, it is appropriate to grant the authorisation until 31 
December  2027.  However,  the  authorisation  should  cease  to  apply  from  the  date  of 
application  of  any  general  provisions  on  tax  advantages  for  shore-side  electricity 
adopted by the Council under Article 113 or any other relevant provision of the Treaty 
on the Functioning of the European Union, should such provisions become applicable 
during the period of the authorisation.  

In order to provide legal certainty to port and ship operators and to avoid a potential 
increase  in  the  administrative  burden  for  the  distributors  and  redistributors  of 
electricity, it should be ensured that Sweden may continue to apply a reduced rate of 
taxation  to  shore-side  electricity.  The  authorisation  requested  should  therefore  be 
granted  with  effect  from  1  January  2024,  in  order  to  follow  seamlessly  on  from  the 
prior arrangements under Implementing Decision (EU) 2020/1674. 

(8) 

This  Decision  is  without  prejudice  to  the  application  of  Union  rules  regarding  State 
aid, 

HAS ADOPTED THIS DECISION:  

Article 1 

Sweden  is  authorised  to  apply  a  reduced  taxation  rate  to  electricity  directly  supplied  to 
vessels, other than private pleasure craft, berthed in ports (‘shore-side electricity’), provided 
that  the  minimum  levels  of  taxation  referred  to  in  Article  10  of  Directive  2003/96/EC  are 
respected. 

Article 2 

This Decision shall apply from 1 January 2024 until 31 December 2027. 

However,  should  the  Council,  acting  on  the  basis  of  Article  113  or  any  other  relevant 
provision of the Treaty on the Functioning of the European Union, provide for general rules 
on  tax  advantages  for  shore-side  electricity  that  become  applicable  during  the  period  of 
authorisation set out in the first paragraph of this Article, this Decision shall cease to apply on 
the day on which those general rules become applicable. 

This Decision is addressed to the Kingdom of Sweden. 

Done at Brussels, 

Article 3 

For the Council 
The President 

EN 

10 

  EN